Frankfurt / Main (dpa) - Savings and rising share prices have pushed private households' financial assets to a record high in Germany.
At the end of the third quarter of 2019, the assets in the form of cash, securities, bank deposits and claims against insurance amounted to 6302 billion euros, as the Deutsche Bundesbank announced in Frankfurt on Friday. That was an increase of 67 billion euros or 1.1 percent compared to the previous quarter. Financial assets increased by 4.5 percent within one year.
According to the information, savers continue to rely, among other things, on cash and bank deposits, which hardly generate anything due to the slump in interest rates, but which they can access quickly. "The preference for liquid or perceived low-risk forms of investment thus continued," explained the Bundesbank. Investors benefited from increased market prices. Shares and shares in investment funds posted gains of EUR 15 billion, which also contributed to the increase in financial assets.
At the same time, people used the low interest rates to borrow cheap money, especially for housing. Overall, household liabilities rose by around 25 billion to around 1861 billion euros. Net, i.e. after deducting debts, financial assets climbed by 41 billion euros compared to the previous quarter to around 4441 billion euros.
The Bundesbank takes cash, bank deposits, securities and insurance claims into account - but not real estate. How the wealth is distributed is not clear from the data.
Long line of financial assets
Financial assets 3rd quarter